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CIRCULAR No. 15/1999/TT/BTM OF MAY 19, 1999 GUIDING LIQUEFIED GAS BUSINESS

In furtherance of Decree No. 11/1999/ND-CP of March 3, 1999 of the Government prescribing goods banned from circulation and services banned from provision; goods and services subject to business restrictions or conditional business, the Ministry of Trade hereby guides the conditions for trading in liquefied gas (L.P.G.) on the Vietnamese market, as follows:

I. SCOPE OF APPLICATION

1. Liquefied gas defined in this Circular is a gas mixture consisting mainly of propane (C3 H8) and butane (C4 H10) which has been liquefied and bottled in pressure-proof metal cylinders with a holding capacity of 150 liters according to the prescribed technical standards of Tieu chuan Viet Nam (Vietnamese Standards) - TCVN 6292:1997 for use as industrial and civil fuels.

2. Liquefied gas business mentioned in this Circular covers the following activities:

2.1. Purchase and sale (including purchase and sale agency, entrusted purchase and sale) of liquefied gas at stores specialized therein and oil and petrol retail stores (hereafter referred collectively to as liquefied gas stores).

2.2. Warehousing services for liquefied gas cylinders.

The business activities regarding the export, import, reception and tankage of unbottled liquefied gas as well as the provision of services on the transport of liquefied gas shall not be regulated by this Circular.

3. Traders, including foreign traders, conducting lawful commercial operations in Vietnam can conduct the liquefied gas business activities only when they have made the liquefied gas business registration and been granted the certificate of eligibility for liquefied gas business activities by the competent State bodies defined in this Circular; during the course of liquefied gas business activities they shall have to abide by the provisions of this Circular.

II. CONDITIONS ON LIQUEFIED GAS BUSINESS ACTIVITIES

1. Conditions on liquefied gas stores:

1.1. Conditions on the business subjects:

Being traders already granted the certificates of business registration, including the business registration of the liquefied gas.

1.2. Conditions on material and technical facilities and equipment:

- The liquefied gas stores must be designed and constructed in accordance with the provisions of Tieu chuan Viet Nam - TCVN 2622:1995.

- The construction of liquefied gas stores must comply with the regulations on the ground area, construction structure, selling place, depot, the stores� auxiliary areas and constructions and power supply in Section 5, Tieu chuan Viet Nam - TCVN 6223: 1996 (Appendix 2 enclosed herewith).

1.3. Conditions on professional qualifications of officials and employees:

The managerial officials and staff members of liquefied gas stores must be equipped with knowledge on liquefied gas, trained in poison prevention as well as fire prevention and fighting and examined and granted the fire-prevention and-fighting certificates by the provincial/municipal police.

1.4. Conditions on health:

Officials and employees working at liquefied gas stores must be in good health to handle the business activities, be given health checks and certified by medical bodies of the district, provincial capital and equivalent or higher level.

1.5. Conditions on environmental protection, fire and explosion prevention and combat:

The liquefied gas stores must be adequately equipped with fire prevention and fighting means and equipment according to provisions in Section 6, Tieu chuan Viet Nam - TCVN 6223: 1996 (Appendix 1 enclosed herewith) and be inspected then granted the fire prevention and fighting safety certificates by the provincial/municipal fire-prevention and-fighting police.

2. Conditions on provision of warehousing services for the preservation of liquefied gas cylinders:

The conditions on provision of warehousing services for the preservation of liquefied gas cylinders shall comply with the provisions in Clause 1 above. Particularly the conditions on material and technical facilities and equipment shall have to comply with the provisions in Clause 5.6, Section 5 Tieu chuan Viet Nam - TCVN 6223: 1996 (Appendix 2 enclosed herewith).

III. COMPETENCE, PROCEDURES AND ORDER FOR GRANTING CERTIFICATES OF ELIGIBILITY FOR LIQUEFIED GAS BUSINESS

1. The provincial/municipal Trade Services shall be the bodies competent to grant the certificates of eligibility for liquefied gas business.

2. The dossiers of application for certificates of eligibility for liquefied gas business (including the provision of warehousing services for preservation of liquefied gas cylinders) shall include:

2.1. The application for certificate of eligibility for liquefied gas business.

2.2. The business registration certificate (valid copy).

2.3. The certificate of fire-prevention and-fighting safety granted by the provincial/municipal police.

If a trader owns many liquefied gas stores (or many cylinder preservation warehouses), he/she must compile the above-mentioned dossiers for every store and/or every warehouse.

3. The provincial/municipal Trade Services shall have to:

3.1. Post up at the dossier-receiving places the following contents: the conditions for liquefied gas business, the dossiers, procedures and time-limit for granting the certificate, the fee levels.

3.2. Inspect the validity of traders� dossiers and receive them.

3.3. Conduct field inspection of the business conditions as prescribed and make reports thereon which shall serve as basis for granting the certificates of business eligibility.

3.4. Grant the certificates of eligibility for liquefied gas business to fully qualified stores and warehouses as prescribed in this Circular. In case of refusal to grant the certificate, the reply must be made in writing, clearly stating the reasons therefor.

The time-limit for granting or refusing to grant the certificate is 15 days at most after receiving the valid dossiers.

4. A certificate of eligibility for liquefied gas business has the validity duration compatible to the duration inscribed in the trader�s business registration certificate.

5. Traders who are granted business eligibility certificates shall have to pay a fee amount prescribed by the Finance Ministry.

IV. REGULATIONS WHICH MUST BE OBSERVED WHEN CONDUCTING THE LIQUEFIED GAS BUSINESS

Traders dealing in liquefied gas must constantly meets the conditions prescribed in Section II of this Circular and observe the following regulations:

1. The loading and unloading, storage and sale display of liquefied gas cylinders at stores must comply with the provisions in Section 7, Tieu chuan Viet Nam - TCVN 6223: 1996 (Appendix 3 enclosed herewith).

2. The transport of liquefied gas from production and bottling establishments to liquefied gas stores and from stores to family users must comply with the provisions in Section 8 Tieu chuan Viet Nam -TCVN 6223: 1996 (Appendix 4 enclosed herewith).

3. Posting up the certificates of eligibility for liquefied gas business and the retail price of each type of liquefied gas cylinders being on sale.

4. Having to directly instruct or provide written instructions to the customers on the safe use of liquefied gas cylinders, including the use of gas stoves.

5. Not to deal in inflammable or explosive substances, foods and drinks as well as foodstuffs at the liquefied gas stores.

V. HANDLING OF VIOLATIONS

1. Traders violating the provisions in this Circular shall, depending on the seriousness of the violations, be administratively sanctioned or examined for penal liability according to the provisions of law.

2. The State officials and employees who abuse their positions and powers and fail to comply with the provisions of this Circular shall, depending on the seriousness of their violations, be disciplined, administratively handled or examined for penal liability according to the provisions of law.

VI. IMPLEMENTATION PROVISIONS

1. This Circular takes effect as from August 1st, 1999; all previous stipulations on liquefied gas business are now annulled.

2. The provincial/municipal Trade Services shall have to organize the implementation of this Circular, arrange; draw up plans on and guide traders of all economic sectors who are engaged in liquefied gas business; inspect and handle violations of the regulations on ensuring social order and safety as well as civilization in trade activities.

To report on the implementation organization as prescribed and on the difficulties and problems to the Ministry of Trade for consideration, supplements and amendments.

For the Minister of Trade

Vice Minister

LE DANH VINH

APPENDIX 1

FIRE PREVENTION AND FIGHTING REQUIREMENTS FOR LIQUEFIED GAS STORES

(Extracts from Section 6 - TCVN 6223: 1996)

1. The store employees must be trained, tested and granted certificates in fire prevention and fighting.

2. There must be at stores the boards "Cam lua" (No fire) and "Cam hut thuoc" (No smoking), as well as fire prevention and fighting instructions and rules which are easily spotted and read.

3. Liquefied gas stores and liquefied gas shops in oil and petrol retail stores must be equipped with at least the following fire-fighting means:

- 01 CO2 fire extinguisher, the 5 kg- type.

- 02 powder fire extinguisher, the 8 kg- type.

- 02 jute bags or woolen blankets;

- 01 tank of water, 20 liters;

- 01 basin of soapy water, 2 liters.

4. Stores not specialized in liquefied gas business must be equipped at least with the following devices:

- 02 powder fire extinguishers, the 4 kg- type;

- 02 jute bags or woolen blankets;

- 01 tank of water, 20 liters

- 01 basin of soapy water, 2 liters.

5. All fire fighting equipment must be placed at convenient places near doors or at safe locations along the passageways between heaps of liquefied gas cylinders, ready for use when necessary.

6. There are circuit breakers to cut the power supply at the stores when they are closed.

7. Detecting and handling leaking gas cylinders:

- Frequently conducting inspections to detect gas leaking. Upon detection of gas smell or alarm signals from alarm devices, to quickly identify the leak. Spraying soapy water on the suspected leaking places in order to determine the leaks. Absolutely not using flame to search for the leaks.

- Marking the leaking cylinders and the leaking places;

- Immediately eliminating all sources of inflammables near the areas where liquefied gas cylinders are stored.

- Tightly sealing the leaks and promptly remove leaking cylinders out of the stores to places far away from sources of fire and crowded places.

- Continuing to announce the ban on smoking and inflammables sources.

- Not removing or repairing damaged valves of gas cylinders, but transferring them to the gas bottling establishments for handling.

- Marking off areas for storing leaking cylinders with board forbidding passers-by and immediately notify the incident to the suppliers.

8. It is strictly forbidden to repair the damage liquefied gas cylinders at the stores.

9. It is forbidden to charge gas in any form at the stores.

APPENDIX 2

SAFETY REQUIREMENTS ON LIQUEIED GAS STORES DESIGNING AND CONSTRUCTION

(Extracts from Section 5 - TCVN 6223: 1966)

5.1 General principles.

5.1.1. The designing and construction of liquefied gas stores must comply with the regulations of TCVN 2622: 1995.

5.1.2. The liquefied gas shops at filling stations must be located at least 20m away from the sources of inflammables.

5.1.3. The specialized and non-specialized liquefied gas stores must be located away from the sources of inflammables at least:

- 03 m to the direction without fire-resistant walls.

- 0 m to the direction with fire-resistant walls.

5.2. Ground area:

5.2.1. For specialized liquefied gas stores

- Total area: At least 12 m2

- The area for commodity storage (if any): At least 10m2

- The area for support projects (if any): At least 3m2.

5.2.2. For shops at filling stations

- The total area for the shop shall not be smaller than the minimum area of the specialized liquefied gas store;

- With an exclusive area for liquefied gas sale, which is proportionate and suitable to the size of the store.

- In the storage, the filled cylinders must be arranged in separation from the empty cylinders and not together with other goods items.

5.2.3. For non-specialized liquefied gas stores, the regulations prescribed for shops at filling stations shall apply.

5.3. Requirements on general construction structure.

5.3.1. Buildings in the store areas shall be built only with bricks or concrete with the fire resistance of grade II.

5.3.2. House floor:

- Smooth, non-rough, non-rugged� ensuring safety for trading activities and transport of commodities;

- Being higher than the surrounding ground; no drainage pipes or sewage are arranged on the house floor; if any, they must be built closely underground;

- All underground tanks must be located at least 2m from the store. If there must be any gutters or ditches within such distance, they must be covered with sheets or lids so that liquefied gas cannot accumulate or travel into the sewage systems.

5.3.3. House walls

- Being even and smooth without holes, cracks, convex and concave;

- Being painted in bright color.

5.3.4. House roof and ceiling

- Being strong enough to resist rain and storm, structured with anti-heat roofs;

- The roof structure must be air-ventilated;

- The ceiling must be even, smooth and painted in bright color.

5.3.5. Doors and air vents must ensure the following requirements:

- The door must be built on the outer wall at least 2.2m in height and 1.2m in width;

- The door must be made of materials which can resist fire for at least 30 minutes, be convenient for movement and carriage of goods;

- In addition to the door, the must be at least 01 exit with door opened outwards so that people from inside can easily escape in case of incidents;

- Wall, roof or floor air vents must be made of materials which can resist fire for at least 30 minutes.

5.3.6. Yard, drive-in and drive-out must be lined with a concrete layer thick enough to stand the load of means transporting commodities.

5.4. Store signboard

5.4.1. The material, color, size and display of the store signboards shall comply with the regulations of the business-managing units.

5.4.2. Being installed in accordance with the regulations of competent bodies.

5.5. The designing of the sale rooms must meet the following basic requirements:

a) Being convenient for sale, purchase, delivery, reception and transport of goods;

b) Being arranged in a proportionate and rational manner, ensuring labor hygiene and safety;

c) Having at least 01 door and 01 exit for carrying commodities outside easily in case of incidents;

d) Lighting

- The lighting equipment must ensure safety against fire and explosion;

- Taking the maximum advantage of the natural light during the goods- sale hours through the system of glass doors and windows, or man-made light.

- Refraining from the use of light in color so as to avoid mistakes in choosing and examining goods by purchasers;

- Having a reserve lighting system in case of blackout.

5.6. Requirements on the designing of goods storage

5.6.1. The goods storage must not be arranged in close rooms, close underground shelter or deep cave.

5.6.2. The storage may be arranged near or next to the sale room (depending on the land area and size of the whole store).

5.6.3. Storage floor:

- Being built of brick of concrete without gutters, ditches or sewage thereon;

- Having openings and air vents on wall or floors to ensure airiness. The bottom of openings and air vents must not be 150 mm higher than the house floor.

5.6.4. The wall, ceiling and roof must be neatly and lightly designed and made of materials which can resist fire for at least 30 minutes.

5.6.5. Walls and roofs must be built with air vents with their total area being not less than 2.5% of the total wall and roof area, not less than 12.5% of the total wall area.

In case the storage is not naturally well-aired, it must be compulsorily (artificially) air-ventilated. The air-ventilating system must ensure that gas discharged into the environment is lower than the permitted level. It must be made of fire-proof materials and the equipment must conform with the fire and explosion safety level.

5.6.6. The liquefied gas cylinder storage must have at least 01 main door and 01 exit and the door-leaves must be made of materials which can resist fire for at least 30 minutes.

5.6.7. The transport way from the storage to the sale counter must be shortest and passable.

5.6.8. The area for storage of liquefied gas cylinders must be well-aired, ensuring that any liquefied gas leakage cannot cause fire.

5.7. Requirements on the designing of the store�s support area.

5.7.1 The entire support area must be airy, hygienic, well-lighted and have the drainage system�

5.7.2. The support area must have a separate door not for use by customers. The passages in the support area must be connected with the sale room.

5.7.3. It is absolutely not permitted to store goods in the support area.

5.7.4. The water supply and drainage systems must:

- Ensure adequate supply of water for fire fighting.

- Have the outlet of the waste water drainage system gone through the hydraulic blockage structure;

- Be made of fire-proof materials for the water drainage system.

5.8. Power supply

5.8.1. The installation of the power supply system and electric equipment must comply with the current technical standards and norms.

5.8.2. All electrical equipment in the station must be controlled by a circuit breaker (an automatic circuit breaker or a close switch-cum-fuse box).

5.8.3. The electric supply system must be an anti-explosion one; electric wires are put in plastic tubes; lamps and switches must be the ones of anti-explosion type.

5.8.4. Wires must not be connected at the middle of the electric lines, but must be connected only at the anti-explosion boxes.

5.8.5. All electric equipment at store must be installed at least 1.5m away from the liquefied gas cylinders.

APPENDIX 3

7. SAFETY REQUIREMENTS ON HANDLING, STORAGE AND SALE DISPLAY OF LIQUEFIED GAS CYLINDERS AT STORES

(Extracts from Section 7 - TCVN-6223: 1996)

7.1. The liquefied gas cylinders must be arranged in blocs and racks.

7.2. Liquefied gas cylinders can be piled up one upon another in firm vertical position. The maximum height of each pile is 1.5m. When liquefied gas cylinders of different sizes are piled up, the cylinders of smaller sizes must be piled up upon cylinders of larger sizes. The distance between racks shall not be smaller than 1.5m.

7.3. The volume of liquefied gas in all cylinders permitted to be kept at a store is 500 kg for a minimum area of 12m2 as prescribed in 5.2.1 and the additional 60 kg shall be permitted for each additional square meter of the storage or the store in general, but not of the auxiliary area.

7.4. Liquefied gas cylinders, when sold to customers, must have their seals intact, be tight close and ensure their quality, volume and registered trademarks.

7.5. Only empty or imitation cylinders are permitted to be displayed permanently in counters or advertisement racks.

7.6. Cylinders in storage or put up on sale must have their safety valves tightly closed.

7.7. Cylinders must not be stored by the doors or at places where people pass by.

7.8. Empty liquefied gas cylinders can be kept outside only if there is no more room in the store. It is strictly forbidden to store empty liquefied gas cylinders on house roofs.

7.9. It is strictly forbidden to store, use or trade in oxygen at liquefied gas stores.

APPENDIX 4

8. SAFETY REQUIREMENTS FOR THE TRANSPORT OF LIQUEFIED GAS CYLINDERS

(Extracts from Section 8 - TCVN - 6223: 1996)

8.1. Vehicles used for the transport of liquefied gas cylinders must have their floors made of or line with materials which are non-inflammable or non- ignitable when under friction. Each must be equipped with at least 01 5 kg-powder fire extinguisher.

8.2. The vehicle trunk must be firm, may be roofed or canvass- covered but well-aired.

8.3. Liquefied gas cylinders of over 100 liters must be arranged only in one layer. Cylinders of up to 100 liters may be arranged in 2 to 4 layers which must not be higher than the height of the vehicle trunk and the prescribed height in traffic. They must be firmly tied up and there must be a board lining between every two layers.

8.4. Motorized three-wheelers are permitted to carry liquefied gas cylinders, but not more than 05 cylinders of up to 100 liters.

8.5. Rudimentary vehicles are allowed to carry liquefied gas cylinders of up to 100 liters with the following maximum quantities:

- 01 cylinder of up to 50 liters for a two-wheelers, which must be firmly tied up;

- 02 cylinders for a cycle, which must be firmly tied up;

- 04 cylinders for a cart.

8.6. It is strictly forbidden to carry liquefied gas cylinders by animal-driven carts.

8.7. Motorized vehicle drivers must acquire fire-prevention and fighting certificates.

8.8. When customers� transport means come to take goods at liquefied gas stores, the store employees shall have to examine the technical conditions of such means and goods safety before supplying the goods. The number of cylinders to be supplied must not exceed the numbers prescribed in Points 8.4 and 8.5.-